There are often reports in the news concerning members of the public defrauding insurance companies. Although most people are not directly involved in fraudulent activities, honest people who have insurance in NJ and other states often bear the burden of increased costs as a result. Insurance fraud costs insurance companies vast sums of money every year and these costs are usually passed down to the innocent consumer in the form of increased rates and premiums.

Fraud can be committed in many areas of insurance including motor vehicle, health, workers compensation and household policies. Members of the public can help to reduce the incidence of insurance fraud by reporting anybody they may suspect of conducting fraudulent activity. Insurance fraud is a criminal activity with serious consequences and it is definitely not worth the risk of getting caught and potentially convicted.

Not giving correct information when you fill out insurance forms is a form of fraud in itself. Be honest and declare all known facts when you require insurance. Risking nonpayment because of withheld or incorrect information is simply not worth the risk. The majority of NJ residents utilize some type of insurance in NJ and we all pay a portion of our premiums toward the cost of insurance fraud. It’s in our interests to reduce it.
 

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